Request for Committee Action

2021-00561: Great Streets Facade Improvement Matching Grant Program updates and Cultural Districts Interior Improvements Pilot Program guidelines
2020-00584: Great Streets Program changes
2020-00446: Cultural Districts ordinance
2020-00088: Great Streets Program Eligible Areas

2020-00024: Small Business Program Review

2019-00155: Great Streets Facade Improvement Grant Program Administration funding awards

2017-01284 - Great Streets Program Areas Categorization

2017-00366 - Great Streets Program changes

The Great Streets Program was created in 2007 to cultivate and sustain vibrant neighborhood commercial districts in the City of Minneapolis. The program utilizes a variety of investment tools, including the Facade Improvement Matching Grant Program which provides grants to businesses and property owners for building improvements. The approval of a new round of funding awards for the Facade program is the subject of this report.

The Great Streets Facade Grant Program seeks to stimulate visible investment in businesses and buildings, attract new businesses to vacant storefronts, support healthy and attractive neighborhood business districts, and provide a resource that administering organizations can offer businesses in their service area.

Program Results

The Facade Improvement Matching Grant Program has stimulated over $10.5 million of investment in business facade improvements since its inception in 2008. This includes $3,066,534 in matching grants from the City which were leverage by $7,504,314 in private investment. For every $1.00 of public investment, the private sector invested $2.45 (see chart below).

The types of improvements funded by matching grants range from small modifications like paint, signage, awnings, and murals, to full-scale rehabilitation and building stabilization projects, which include tuck-pointing and window and door replacement.

When asked to describe the outcomes they have observed from the Great Streets Facade Improvement Matching Grant Program, administrators’ answers include:

• the program had become a significant impetus to a much-refreshed look in the business area,
• funds projects that would not have happened without the grant dollars,
• acts as a catalyst for other property investments involving a facade grant,
• transforms entire commercial intersections,
• builds positive working relationships with businesses,
• funds diverse businesses in a variety of different areas, and
• creates a favorable image of the city.

Great Streets Eligible Areas

Eligible areas include parcels identified as one of seven Land Use Categories defined in the City’s comprehensive plan – Minneapolis 2040 - and shown on the Great Streets Eligible Areas Map. The Great Streets map shows the program areas in blue, orange, or purple. The blue parcels are eligible areas, the orange parcels are priority areas, and the purple parcels are City-designated Cultural Districts. Each area has a corresponding maximum grant and private match requirement as follows: Eligible parcels – 1:2 public to private match, maximum grant amount $5,000, Priority parcels – 1:1 public to private match, maximum grant amount $7,500, Cultural Districts parcels – 1:0.5 public to private match, maximum grant amount $10,000.

Request for Proposals

Proposals for Great Streets Facade Improvement Program Administration were solicited through a Notice of Funding Availability (NOFA) process. Staff issued the NOFA on June 30, 2022, with proposals due August 11, 2022. The proposal submittal form requested information regarding:

• Proposed service area.
• Organizational and staff experience and capacity to administer the program.
• The strategies, processes, and criteria for achieving high-quality improvements that are consistent with the program’s design guide, and where applicable, consistent with area-specific design guidelines.
• Area demand for the grant dollars; and
• The organization’s marketing plan for the program.

Organizations administering a Great Streets Facade Improvement agreement are responsible for marketing the program, assisting property and business owners with all steps of the grant process, keeping records and tracking each awarded grant, reviewing applications for eligibility, and providing the City with all required documentation. Organizations may charge an administrative fee of up to 15% of the total award value for this work. The agreements are for three years to give organizations time to market, complete and document the work.

Review

CPED received nine proposals in response to the NOFA. The total funding amount requested was $420,000. City staff evaluated the proposals and recommends funding all nine proposals at the requested amount. These new awards will join four existing agreements from prior years which cover other areas of the city. The following chart lists the staff recommendations, and the attached map (Exhibit 1) displays these recommendations, along with other areas serviced by open agreements. Organizations that will continue to offer facade grants under open agreements include African Economic Development Solutions, Nokomis East Neighborhood Association, Standish-Ericsson Neighborhood Association, Victory Neighborhood Association, and Webber Camden Neighborhood Association. CPED staff will continue to serve Great Streets Priority areas or Cultural Districts that currently do not have a community partner administering the program. Staff has allocated $50,000 for grant applications for unserved areas that CPED staff will directly administer.

RECOMMENDED FOR FUNDING

Any unallocated dollars remaining at the end of the three-year agreement period will be unencumbered and rolled back into the Great Streets program.

Bancroft Neighborhood Association

Bancroft Neighborhood Association (BNA) has had four previous Great Streets Facade Improvement administration contracts. Administering these contracts has helped them forge better relationships with local business associations and local businesses.

BNA did not apply for Facade Grant funds in 2021, but recently had several businesses inquire about the program. These inquiries prompted BNA to submit a proposal this year to administer the program.  Their current staff has successfully administered the Facade Grant program in the past and will be responsible for business outreach and administration. Staff recommends awarding Bancroft Neighborhood Association $50,000.

Hale, Page, Diamond Lake Community Association (HPDL)

The HPDL Board has a history of working with local businesses and wants to continue their relationship through this grant opportunity.  Their last façade grant administration contract expired in 2019, but they have continued to provide funding for revitalization projects, including murals on commercial buildings, bike racks, and utility box anti-graffiti wraps.

They have hired a part-time staff member who will be responsible for the façade grant administration.  They will work closely with the Southwest Business Association who has substantial experience with the program and anticipate assisting five businesses with facade improvements. Staff recommends awarding Hale, Page, Diamond Lake $20,000.

Lake Street Council

The Lake Street Council (LSC) has developed a successful facade improvement program, serving the longest commercial corridor in the City with six miles of nearly continuous commercial properties. The LSC is not only very good at managing facade improvement projects on Lake Street; they are also an example to other organizations of how to effectively partner and communicate with multiple constituencies.

LSC staff processed grant applications from more than 100 businesses and property owners. These grants have spanned the length of Lake Street and have ranged from $75 to over $5000. They believe this program is an essential part of their organization and continue to see demand for it year after year.

They complement these facade grants with a comprehensive set of programs that work together to support businesses on the corridor, including marketing, technical assistance, community safety initiatives, sustainability improvements, and advocacy. Staff recommends awarding LSC $50,000.

Northeast Minneapolis Chamber

The NE Chamber has effectively administered eight facade grant agreements. The $340,000 in matching facade grant funds has impacted 94 properties in their service area. The NE Chamber stated that the program supports the efforts of the Chamber, the NE Minneapolis Arts Association and the NE Minneapolis Arts District to create more equitable access to resources that support small businesses.

The Chamber stated that the appetite for improvement, the continued surge in property acquisition and the number of new businesses interested in opening or re-locating in Northeast has provided significant demand for the program. They anticipate serving 10-15 businesses through the program based on the inquiries they have received after committing their current funding allocation. Staff recommends awarding the Northeast Minneapolis Chamber $50,000.

Seward Redesign Inc.

Seward Redesign Inc. (Redesign) has successfully administered the facade grant program since 2008. They work in close partnership with Seward Civic and Commerce Association (SCCA), the Longfellow Business Association (LBA) and the Lake Street Council (LSC) to coordinate marketing and business outreach. Redesign and LSC coordinate their respective facade grant efforts on East Lake Street.

Because of Redesign’s holistic approach, in-house expertise, and experience with the program, the staff is involved in facade improvement grant projects in their early phases in most cases. This allows them to advocate for pedestrian-oriented features, public art, exciting uses of marketing strategies, and other design choices that positively impact corridor activation and revitalization. Redesign currently has 13 businesses that are interested in completing facade improvements. Staff recommends awarding Seward Redesign $50,000.

Southwest Business Association

The Southwest Business Association (SWBA) has successfully administered the Great Streets Facade Improvement awards since 2008. Their administrative costs are very low allowing virtually all the funds to go to businesses. The program has supported facade improvements on storefronts all along the corridors in their service area. The grants have gone to a range of business sizes from one-person shops to those that have over 30 employees.  All grants have gone to locally owned businesses and individual/small estate building owners.

SWBA also proactively markets the matching grants for energy conservation, reaches out to start-ups on a timely basis and seeks out building owners. They have documented an extensive list of businesses who are interested in facade improvements. SWBA volunteer staff has also worked with other neighborhoods to encourage the use of the program throughout the city. Staff recommends awarding SWBA $50,000.

West Bank Business Association

West Bank Business Association (WBBA) has been the neighborhood’s facade grant administrator for many years. The program is well-established in the neighborhood and used by a diversity of businesses.  WBBA has been the sponsor of several commercial revitalization projects on Cedar Avenue. Currently, their are finishing their “storefront beautification blitz”. This program was a result of a storefront study in 2021 which indicated the importance to residents and businesses of improving the look of storefronts in the neighborhood. They have also recently led other revitalization projects such as installing bike racks and wrapping utility boxes.

WBBA currently has a high demand for the program and a waiting list of applicants. They expect 10-15 businesses to benefit from these funds. WBBA plans to continue its in-person outreach to businesses because that approach has shown an increase in engagement, utilization of WBBA services, and collaboration among businesses. Staff recommends awarding West Bank Business Association $50,000.

West Broadway Area and Business Coalition (WBC)

The West Broadway Business and Area Coalition (WBC) serves the entrepreneurs, businesses and leaders of North Minneapolis. Their mission is to create an inviting and vital West Broadway Corridor and to transform the Northside into a thriving economic community. One of the pillars of WBC’s mission is to play a role in the economic development and beautification elements as they relate to the small business community, and their continued work to utilize the City’s Great Streets Facade Grant program would enable WBC to continue its mission.

WBC has played an important role in the Facade Improvement Program in past years and has been able to successfully support dozens of small businesses through this program. As small businesses continue to recover from the impact of COVID-19 and social unrest, WBC is poised to continue connecting locally owned businesses to important opportunities such as this one. Staff recommends awarding West Broadway Area and Business Coalition $50,000.

Whittier Alliance

The Whittier Alliance had Great Streets Facade Improvement contracts from 2008-2012, 2014-2017, 2018-2021, and they aim to re-establish the program in their area so both new and existing businesses can apply. Grant recipients from previous cycles have been very successful in shaping and adding to the character and curb appeal of the Whittier neighborhood. The Whittier Alliance recognizes that this program is a benefit to individual businesses but also the greater Whittier and Minneapolis community.

They have coordinated with staff at Loring Park Neighborhood and Stevens Square-Loring Heights neighborhoods to ensure that their eligible parcels are included in the opportunity and would be serviced under the contract with Whittier Alliance. The Lyndale Neighborhood will also assist by utilizing their connections to businesses along Lake and Nicollet and will help business owners apply for funding through this contract. Staff recommends awarding Whittier Alliance $50,000.

Summary

The Facade Improvement Matching Grant program has become a successful cornerstone of the Great Streets Neighborhood Business District program for years ushering in over $10 million in investment in commercial properties citywide. The array of new strategies developed by the administering organizations to spur investment and support economic vitality has helped the City achieve its program goals.